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Amazon emerges victorious from its historic labor battle against unionization

Snacks / Monday, April 12, 2021

Sarah cast her ballot... and the votes are in. Fun fact: there are more Amazon employees than Americans named Sarah. Now, a massive labor showdown at America's second-largest employer is making headlines (again). Amazon workers in Alabama just voted not to unionize their warehouse. It would've been Amazon's first unionized US warehouse. Some context:

  • Last month, Amazon warehouse workers in Bessemer, Alabama were pushing to unionize for job security and better working conditions.
  • Amazon pushed back (think: anti-union bathroom flyers). It doesn't want to be legally required to bargain with the retail union over its workers' rights.
  • Last week, ~71% of the Alabama workers who cast ballots voted against joining the RWDSU (Retail, Wholesale and Department Store Union).

Prime outcome... While Amazon says it "didn't win" because employees made the choice, it's a victory for the 'Zon. Union rules could've limited its freedom to quickly hire (or cut) workers, and its ability to automate (think: more robot-hiring). On Friday, Amazon shares jumped 2% to their highest level in months. Why some workers voted "no"...

  • Unnecessary middleman: Workers who voted against the union said issues could be resolved within Amazon, without the union middleman.
  • Unnecessary dues: Some didn't see a benefit in paying dues to a union. Amazon says it already offers competitive benefits and wages.

The pushback isn't over... Blue-collar unions have been falling out of favor in the US: the unionization rate fell from 35% in the mid-1950s, to 11% in 2020. This vote seems to confirm that trend. But it’s not the end of the labor pushback against Amazon. Labor activists are already looking at other methods to challenge Amazon’s practices. And they could get a boost from legislators: politicians on both sides of the aisle are eager to reign in Amazon’s power, and many are advocating for better conditions for workers. Think: better hours and bathroom breaks.

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